The Motor Trade Association (MTA) wants the Government to tighten constraints against people who sell more than six vehicles a year without registering as motor vehicle traders.
Tony Everett, project manager for the 750 dealer members of the MTA, said any conviction for "illegal trading" -- selling more than six vehicles in 12 months without registering as a motor vehicle trader -- should be a banning offence.
"The normal sequence of events with enforcement authorities is that a warning is given, then a conviction," said Mr Everett. "They can stay in business and potentially get convicted again.
"Surely one conviction is adequate: one warning, one conviction, and then you get banned."
He also asked for stronger criteria for registration, because it was too easy at present for anyone willing to pay $583.
"If someone knows their name, date of birth, address and have not been convicted under the Fair Trading Act or of a criminal offence -- they're effectively in," he said.
They should at least have to show they know the legal requirements of the relevant legislation before being approved to deal with hundreds of thousands of thousands of dollars worth of sales.
There should also be a compulsory identifier, such as "registered motor vehicle trader" (RMVT) displayed on advertising. At present sellers do not have to disclose they are a trader unless they are asked by a buyer.
Mr Everett said dealers were also worried about people selling "mopeds" such as small scooters with motors under 60cc, because these were not covered by the vehicle sales act.
They should be covered because over 7000 had been sold in the past year. Some of them were being sold by hardware shops, rather than by the motorcycle dealers originally envisaged.
He said consideration was being given by another government arm to requiring warrants of fitness for the mopeds.
